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General Electric cuts 12,000 jobs in power equipment division

Staff Writer | December 7, 2017
General Electric is to cut 12,000 jobs in its power business, 18% of the division's global workforce.
General Electric
Loss of jobs   Painful but necessary
General Electric expects the "painful but necessary" job losses to help save $1bn next year as demand for fossil fuel power plants wanes.

GE Power is the company's largest industrial business, employing more than 55,000 people worldwide.

Elsewhere, one-third of the firm's Swiss workforce and one-sixth of German workers are likely to be hit.

The reduction in jobs is part of a restructuring by new GE chief executive John Flannery, who took over in August from his veteran predecessor Jeff Immelt.

"Traditional power markets including gas and coal have softened," the company said.

In October, GE slashed its profits guidance after posting a 5% fall in third-quarter earnings to $1.8 billion, due to weak trading in its power and oil and gas businesses.